Triangle Pete Corp. (fka TPLMQ)

[Jean01234]

Interesting read

Read more: http://www.oilweek.com/news.asp?ID=25297#ixzz0aCdEoBOS

Triangle Petroleum Corp. (TSXV:TPE), a junior energy company working on a shale natural gas project in Nova Scotia, is shaking up its management and broadening its focus after being pressed by its biggest shareholder to make changes.

The Calgary-based firm said Tuesday that Mark Gustafson, who will step down as chief utive, will be replaced by Peter Hill, formerly an independent adviser to Palo Alto Investors, which holds 21 per cent of Triangle´s stock.

Triangle also plans to look at entering North American shale plays that are more established than the Windsor Block in Noval Scotia, the firm´s main asset.

"This company needed a new strategy because investors could not see how they were going to get to their end point," said David Anderson, Palo Alto´s director of energy research.

"How do you break the cycle? One way you do it is to bring in a new team. You some momentum, you come with a new strategy and you find financial backing."

Triangle´s shares gained more than 44 per cent to 19.5 cents on Tuesday, with about 116,000 traded by mid-afternoon on the TSX Venture Exchange.

Triangle currently has no debt and cash reserves of over $5 million to support its plans.

Palo Alto brought its concerns to Triangle´s management last month and found that its suggestions were welcomed.

"This is a very positive development for our shareholders," said Gustafson, the outgoing chief utive. "The new focus on unconventional oil plays combined with strong financial sponsorship should result in significant shareholder value creation."

Anderson called Gustafson a "class act" who did right by his company´s shareholders.

Hill, the new CEO, has held several senior positions at British Petroleum, was president of Harvest Natural Resources and non-utive chairman at Toreador Resources Corp. in the past.

He and two others have been added to the company´s board of directors.

A few years ago, Palo Alto became fascinated by how technologies like horizontal drilling and multi-stage fracturing were unlocking huge natural gas supplies from shale formations in the United States.

Looking to capitalize on that phenomenon, Palo Alto bought a stake in Triangle, which at the time had positions in multiple shale plays.

Over time Triangle exited some of the other areas, turning a singular focus to its Windsor Block in Nova Scotia, making it something of a "one-legged stool," according to Anderson.

Palo Alto likes the Windsor Block, but says Triangle should try to squeeze some cash flow out of other areas, where there are more infrastructure and partnership opportunities.

"We´re not leaving that one behind. We think there´s huge upside in that potentially. But it´s still a science experiment," said Anderson

Earlier this year, Palo Alto spearheaded an overhaul of another small Calgary-based company, Canadian Superior Energy Inc. (TSX:SNG), whose main asset was a stake in a large offshore natural gas project in Trinidad and Tobago.

Palo Alto had voiced concerns about Canadian Superiors´ governance, as well as its handling of the Trinidad asset, which is believed to contain up to five trillion cubic feet of natural gas.

After a protracted battle, Canadian Superior inked a settlement with Palo Alto in August, agreeing on six nominees for the company´s board of directors.